Export prices changed insignificantly. However, fragrant rice prices are expected to ease as
the Government is reportedly planning to release intervention stocks in order to prepare
their warehouses for the next crops’ intervention program. The Government also conducted
bidding for its fragrant rice stocks of around 420,000 tons (300,000 tons from 2004/05
crops and 120,000 tons from 2005/06 crops) on Jun. 27, 2006. It is expected that the
Government will likely release the 2004/05 fragrant rice stocks to President Agri Trading
Co., Ltd. and 2005/06 stocks to Chiameng Co., Ltd. because they offered the highest
bidding at around U.S.$ 460/MT. These exporters are reportedly expected to export this
fragrant rice (100% B grade) at the prices of around U.S.$ 490-500/MT, close to current
market prices, as their bidding prices did not include upgrading costs of around U.S.$
30/MT. Meanwhile, white rice prices will likely remain high due to current tight exportable
supplies, as exporters are aggressively fulfilling the pending shipments to Iran and Iraq.